After a horrible track record over the past two decades, Lagarde said the current government is enacting fiscal reforms and fighting corruption to turn the country around.

"Ukraine has been an incredibly encouraging situation," she said in an online press conference. "We have seen political determination to change the face of Ukraine," despite the ongoing war with pro-Moscow rebels occupying large parts of the country's east.

"The Ukrainian authorities have actually delivered," she said, showing "very strong political deliberation" as they tackle challenges "on all fronts."

The struggling country is even making progress restructuring its huge debts, Lagarde said, adding that bondholders have been "sensible on what can be achieved."

Ukraine announced it may borrow $1 billion in November through a new sale of bonds backed by the United States.

That would be part of more than $3.2 billion in international assistance Ukraine expects to get by the end of the year, including another $1 billion from the World Bank and 600 million euros from the European Commission.